The naira experienced a slight appreciation against the US dollar in the official foreign exchange market, closing at N1,330.87 per dollar on Tuesday, October 6, 2026. This marks an improvement of 82 kobo from the previous session's rate of N1,331.69, representing a modest gain of 0.06% for the local currency.

Despite this positive movement against the dollar, the naira did not fare as well against other major currencies. The local currency weakened against the British pound, which rose by N7.31 to close at N1,767.14 per pound, up from N1,759.83. Similarly, the naira depreciated against the euro, losing N5.87 to trade at N1,498.03, compared to N1,492.16 in the previous trading session.

In the parallel market, the naira maintained its value against the dollar, with the exchange rate remaining steady at N1,370 per dollar. This stability in the parallel market contrasts with the fluctuations seen in the official market.

A significant development in the forex market was the dramatic increase in trading volume. The Nigerian Autonomous Foreign Exchange Market (NAFEM) reported a surge in forex turnover, which skyrocketed by 334.8% to reach $313.545 million, up from $72.119 million in the prior session. This surge was supported by 103 deals recorded during the trading day, reflecting heightened activity in the market.

Additionally, Nigeria's gross external reserves have shown positive growth, nearing the $55 billion mark. As of October 2, 2026, the reserves rose by approximately $24.99 million to stand at about $54.95 billion. This increase has been attributed to stronger crude oil production, a resurgence in foreign portfolio investments, and a reduction in import-related outflows, all contributing to a more favorable economic outlook.

In summary, while the naira has gained slightly against the dollar, its performance against other currencies has been less favorable. The notable increase in forex turnover and the rise in external reserves indicate a dynamic and evolving economic landscape in Nigeria, driven by various factors including oil production and foreign investments.